Sony has increased its shares in Kadokawa as both companies agree to a “strategic capital and business alliance.”
Sony already owned shares in the media heavyweight, but following today’s announcement, it will now own around 10% of the company, making it its largest shareholder. Despite previous reports about Sony’s interest in acquiring the company, this deal does not constitute an acquisition and Kadokawa will remain an independent entity.
In a press release, Sony said it plans to “discuss specific collaborative initiatives, such as initiatives to adapt Kadokawa’s intellectual property into live-action films and television dramas globally, co-produce anime works, expand global distribution of the works from Kadokawa anime via Sony. Group, further expand the publishing of Kadokawa games and develop human resources to promote and expand virtual production.”
To gaming fans, Kadokawa is best known as the parent company of FromSoftware, developers of Elden Ring.
“We are very pleased to conclude this business and equity alliance agreement with Sony,” said Takeshi Natsuno, CEO of Kadokawa. “This alliance is expected to not only further strengthen our IP creation capabilities but also increase our IP media mix options with Sony’s support for global expansion, allowing us to offer our IP to more users in everyone.
“We are confident that this will go a long way to maximizing the value of our intellectual property and increasing our corporate value in the medium and long term. “We intend to do everything possible to ensure that our collaborative efforts with Sony produce excellent results in the global market.”
Sony Chairman Hiroki Totoki said: “Through this business and equity alliance, we will become the largest shareholder in Kadokawa, which consistently creates a wide variety of intellectual property, including publications and books such as light novels and comics, as well as games and anime.
“By combining Kadokawa’s extensive IP and IP creation ecosystem with the strengths of Sony, which has promoted the global expansion of a wide range of entertainment, including anime and games, we plan to work closely to realize the Global Media strategy. Kadokawa’s Mix, which aims to maximize the value of its intellectual property and Sony’s long-term ‘Creative Entertainment Vision’.”
